analysis of the development status and prospects of vietnam’s furniture manufacturing industry

furniture manufacturing is one of the pillar industries in vietnam. compared with china, vietnam has more advantages in exporting furniture products. on the one hand, the local raw materials related to furniture products are relatively abundant, and the labor cost and land rent involved in factory construction and operation are lower, which attracts domestic and foreign furniture brands to invest and build factories here. on the other hand, the free trade agreements signed between vietnam and various developed economies have brought certain convenience and tariff advantages to the export of vietnamese products. among them, the “eu-vietnam free trade agreement” (evfta), which will come into effect in 2020, proposes to reduce 99% of the bilateral tariffs between the eu and vietnam within ten years, the agreement will help boost vietnam’s exports of goods to the eu.

throughout the past few months, vietnam’s furniture manufacturing industry has continued to maintain a good growth trend.

seen from the production side, since the end of 2021, vietnam furniture factories have returned to full capacity. from february to may 2022, the production index of vietnam’s furniture manufacturing industry has increased by more than 9% compared with the same period last year, and the industry has maintained a relatively high development speed. among them, in may 2022, the index will increase by as much as 10.4% year-on-year. this is due to the rapid growth of vietnam’s exports of goods (16.4% year-on-year) in the context of strong overseas demand in may.

seen from the demand sideon the one hand,march 2022 as of may, vietnam’s retail sales index of goods and services both increased by more than 9% year-on-year, reflecting the rapid growth of vietnam’s domestic consumption demand for goods and services during this period. among them, the index achieved a year-on-year rapid growth of 22.6% in may 2022, marking the sixth consecutive month of positive year-on-year growth in consumer demand for goods and services in the country since december 2021. on the other hand, the european union and australia are the main export markets of vietnam’s non-wooden furniture, accounting for more than 80% of its total exports. judging from the data from march to april 2022, the total value of vietnam’s non-wood furniture exports to these two markets has achieved a growth of more than 5% compared with the same period last year.

table1. the total amount of non-wooden furniture exported from vietnam from march to april 2022 (unit: ten thousand us dollars)

in the second half of the year, the development prospects of vietnam’s furniture manufacturing industry remain to be seen. from the point of view of the two major export destinations of non-wooden furniture in vietnam: on the one hand, the inflation in many eu countries under the influence of the russia-ukraine war is serious, and the overall economic growth rate of the eu is expected to be pessimistic. it is expected that the furniture orders from the eu will increase in the future. uncertainty. on the other hand, in april 2022, after the epidemic eased in australia, the growth of domestic consumption and the strong recovery of the labor market made the pace of economic recovery significantly faster than most for developed economies, the future economic growth is expected to be relatively optimistic.

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13%

in the second half of the year, the development prospects of vietnam’s furniture manufacturing industry remain to be seen. from the point of view of the two major export destinations of non-wooden furniture in vietnam: on the one hand, the inflation in many eu countries under the influence of the russia-ukraine war is serious, and the overall economic growth rate of the eu is expected to be pessimistic. it is expected that the furniture orders from the eu will increase in the future. uncertainty. on the other hand, in april 2022, after the epidemic eased in australia, the growth of domestic consumption and the strong recovery of the labor market made the pace of economic recovery significantly faster than most for developed economies, the future economic growth is expected to be relatively optimistic.